Weakening Demand and Regulatory Burdens Impact the US Bromine Market

Texas, USA: The Bromine market in the United States has demonstrated weak sentiments owing to weak consumer demand. Over the past few weeks, the prices have been continuously declining. The consumer demand from the downstream flame retardant and other intermediate industries has remained moderate, and the purchases were made mainly on a need basis.

Apart from the low demand for Bromine, various other factors are also impacting the overall growth of the Bromine market. According to the findings of a survey that was conducted among members of the American Chemistry Council (ACC), the obstacles that are weighing on chemical manufacturing in the United States have shifted from constraints in the supply chain to regulatory burdens in light of the ongoing lack of demand.

The most recent survey done by market participants, which asked for responses from chemical manufacturers, reported that they are seeing a decline in sales, production, and output due to weakening demand in major end markets for their customers.

Shortcomings in US synthetics arose in the second quarter of 2022 and advanced into the year's end areas of strength for balancing prior to the year. This is in line with the findings that chemical companies perceived a decline in overall business activity and major customer demand in the first quarter but anticipated an improvement over the following six months.

According to ESI findings from Q2, new orders for chemical producers were practically flat, production levels declined, and stockpiles of both raw materials and finished items were worked down.

In August 2023, the prices of Bromine Bulk FOB Houston (USA) decreased slightly by 0.6%, settling at USD 3498 per tonne, down from USD 3520 per tonne in July 2023. Bromine supply was adequate in the domestic market, and demand prospects were favorable, supporting good market sentiments for the commodity in the North American area.

Imports of Bromine from the biggest players, Israel and Jordan, have also decreased due to slow demand in the domestic market. Furthermore, Bromine FOB Aqba prices were falling as producers recognized little customer demand and were working at low production rates.

According to the ChemAnalyst database, the market outlook for Bromine in the US region is anticipated to improve in the upcoming weeks as the demand outlook is predicted to rebound in the region. Given the industry's persistent uncertainty, it is expected that the likelihood of increased demand from the flame-retardant market will bring much-needed hope for the Bromine market.